From: International Briquettes Holding, IBH Subsidiary of Siderúrgica Venezolana SIVENSA S.A.C.A. Contacts: Mrs. Isabel Camejo / Mr. Maury Bedoni Investor Relations Telephones: (02) 707.61.45 / 707. 64.49 Telefax: (02) 762.99.38 / 707. 64.26 E-mail: ir_dept@sivensa.com FOR IMMEDIATE DISTRIBUTION:

IBH REPORTS FIRST QUARTER 1999 RESULTS

Caracas, January 29, 1999 ... International Briquettes Holding (IBH), a company dedicated to the production and commercialization of iron-ore briquettes, reported sales of US$ 1.8 million, operating loss of US$ 3.2 million and net loss of US$ 3 million, during the quarter ended December 31, 1998.
As informed in IBH's Report for fiscal year 1998, the Venprecar plant had a shutdown during the October-December 98 period, due to the enhancement and maintenance works programmed and to excess inventories in the international market, which significantly affected prices for products. This period of no operations explains reported sales as well as IBH's operating results during the quarter. In terms of volume, sales of 14,816 tons were reported, with an average price of US$ 92.1/MT.
The Venprecar plant restarted operations on January 4, 1999, as scheduled, with the fourth briquetting machine and a capacity increased to 800,000 MT/year. Currently, Venprecar has stabilized its standards of operations. Regarding the Operaciones RDI plant, we exported 75,003 MT at an average price of US$ 118.4/MT. This price was possible thanks to the long-term contracts signed previously with our clients. It is worth noting that the Operaciones RDI plant achieved a historic record of operations in 22 years, with a 162.7-day run. The previous record was 142 days. This achievement is attributable to the new cyclone design incorporated to the reactors of the plant.
The Orinoco Iron project, through which a 2.2 million-ton per year briquette plant is being constructed, progressed according to schedule with 69% execution. Also, sixteen reactors of the two modules and two of the four gas scrubbers were installed. As of December 1998, 2,760,389 man-hours from the total 8,377,342 estimated for the completion of the project had been worked. At the beginning of this year, the FINMET plant constructed in Port Hedland, Australia by The Broken Hill Proprietary started tests at high temperatures. The first briquette production is expected in few days. It is important to recall that Brifer, a company that is part of the joint venture with BHP, shares the technology rights over the FINMET process with VAI Technology from Austria. International Briquettes Holding (IBH), was created during fiscal year 1997 to group all of Sivensa's HBI operations under a single division. The company, which is listed on the NASDAQ stock exchange, produces briquettes of iron-ore mainly for sale in foreign markets. IBH holds 98.9% of Venprecar and 50 % of the companies under the IBH/BHP Joint Venture umbrella: Operaciones RDI, Brifer and the Orinoco Iron Project. Its operations are strategically located to take advantage of the low cost of inputs such as iron-ore and natural gas available in Venezuela to produce HBI. Its current installed capacity of 1.2 million MT will be increased to 3.4 million MT by the year 2000 when the Orinoco Iron plant begins operations.